DEPRECIATION

PROBLEM 3.

An earth moving equipment that cost P90,230 will have an estimated salvage value of P18,076 at the end of 10 years. Determine the following:

a. Book value after 4 years using Double Declining Balance Method.

b. Depreciation on the 6th year using Declining Balance Method.

c. Book value after 7 years using Declining Balance Method.